House flipping in South Africa: Smart investment or risky move? Property expert weighs in

702 and CapeTalk’s Africa Melane speaks with Nadia Aucamp, broker/owner at RE/MAX All Stars.

Listen below:

House flipping refers to a real estate investment strategy where you buy a residential property at a discounted price and make the necessary renovations and improvements to add value.

Usually, the property is then sold fairly quickly for a profit. 

While it might seem like a lucrative strategy, it does come with its challenges.

These include underestimating the costs involved and the risk of overcapitalising in a specific area.

Aucamp recommends looking at the buying price, outlining a realistic renovation budget, and researching a strong resale demand in that specific area. 

“Rather buy the cheapest house in the best area where you will always have a return on investment.”

– Nadia Aucamp, broker/owner – RE/MAX All Stars

“Realistically, you need to look at your budget and do a proper market analysis to guide you.”

– Nadia Aucamp, broker/owner – RE/MAX All Stars

Scroll up to the audio player to listen to the discussion.